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Latest update: 24/01/2009
Automakers' crisis deepens Detroit's despair
Following the subprime mortgage crisis and the global credit crunch that followed, the worst nightmares of the motor trade are becoming a reality. And nowhere does this reality bite harder than in the Motor City, Detroit.
From America through Europe to Asia, the car market has crumbled under the weight of the global financial crisis. In Europe, automakers have been forced to scale back production. In the United States, where one employed American out of 10 is linked to the car industry, even the giants of the auto sector are facing an unprecedented crisis.
When one considers the assembly-line industrial model invented by Henry Ford and copied throughout the world, or the grand proportions of a Cadillac and other shiny-chrome limousines – true visions on wheels – of the last century, it is the auto industry more than any other that has, without a doubt, embodied American power.
Today, its cars are not selling. The high prices for gasoline and the credit crisis have demolished the market. It must be said that US automakers have been technologically surpassed by the Japanese and European competition, which grasped the need to anticipate reversals in the market and to develop vehicles with less voracious appetites for petrol.
The American car industry has a capital: Detroit. General Motors, Ford and Chrysler all based their headquarters and main factories around the city. And when the auto sector is wounded, the domino effect can be felt throughout the city. Franck Berruyer and Natacha Butler went to see first-hand the city where everything began – and where it may all end.
Comments (3)
Aotomakers despair.Detroit
Exceptional.Well Done
Excellent article
Have to agree with Marylou-This article was done very well, showed a very human side of this Detroit auto disaster. The people who were interviewed were very well chosen---
I would like to see more articles too that reach into ordinary people's lives so well----
Thank you France24----
More please
Nice to see a report with the 'real' people and not just the men in suits at the top. Some great interviews, everyone had something interesting to say and gave us a real insight. More please. Also loved the way the story was told, held my attention throughout, which not every 'reporters' does.